In August, Chief Secretary to the Goverment Tan Sri Mohd Sidek Hassan announced that MAICSA had agreed to reduce the charges for incorporating a company from about RM3700 to RM2800 and annual corporate fees from about RM1850 to RM1200. Tan Sri is the co-chairman of the Special Task Force to Facilitate Business (Pemudah).

These are actually minimum fees that were recommended by the Company Secretaries Consultative Group (CSCG) formed under the Corporate Practice Consultative Forum of the Companies Commission of Malaysia (CCM). The objective of the group was to address the different secretarial fees charged by professional company secretaries and to develop a minimum scale of fees for secretarial and other services in bands for the various ranges of services provided by professional company secretaries in public practice. This is to ensure a minimum standard in the fee structure and quality of service commensurate with the level of fees charged.

Spearheaded by MAICSA, other members of the CSCG comprise Malaysian Association of Company Secretaries, Institute of Approved Company Secretaries, Persatuan Setiausaha Syarikat Melayu Berlesen Malaysia, Bar Council Malaysia, Malaysian Institute of Accountants and Malaysian Institute of Certified Public Accountants.

MAICSA had also re-submitted a memorandum to Ministry of International Trade and Industry (MITI) for the creation of a separate heading for "Corporate Governance, Compliances and Secretarial Advisory Services" in the Services Classification List of World Trade Organisation (WTO). The separate heading will pave a way for worldwide recognition of the roles and functions of company secretaries who have existed ever since Company Law legislation was enacted in the 1800s by the United Kingdom and Commonwealth countries. At present, there is no separate category for company secretaries unlike other professionals like doctors and accountants in the Services Sectoral Classification list of WTO. Worldwide recognition is deemed neccessary when we embrace globalisation where Company Secretaries would then be able to expand their services to corporations and compete globally.

In our memo to MITI, we defined the word "company secretary" as an officer in a corporation who carries a position of great responsibilities in ensuring good corporate governance principles and practices are implemented by the board of directors. Corporate governance has become so significant in ensuring high standards of compliance and proper conduct as well as providing a system for check-and-balance where transparency and accountability matter. It is a prerequisite in any country that wishes to bring in foreign direct investments (FDIs).

For your information, the Institute of Company Secretaries of India (ICSI) had requested its government to lobby to WTO for the same thing. ICSI formally communicated its WTO initiative to ICSA during the International Council meeting in October 2004 where the International Council felt that it was a worthwhile initiative and useful to align itself with that of ICSI. The International Council had endorsed the view taken by ICSI and mandated other Divisions to lobby with their respective Governments.

Following the mandate by ICSA, we have in fact submitted the same resolution adopted by ICSI to the Ministry of Finance, MITI and Ministry of Domestic Trade and Consumer Affairs in August 2005. Since there was no further update from these Ministries, the Council decided to revive the WTO initiative and resubmit the resolution to MITI. A delegation from MAICSA led by the President made a visit to MITI recently to present and submit the Memorandum.

The advantages far outweigh the disadvantages. Among them, there will be a global branding for company secretaries services, better support for MAICSA's call for Company Secretaries Act and cross border economy will flourish.

We shall keep you updated on this matter once we receive any feedback from MITI and will continue with our profilling initiatives to raise the level of regconition for the profession to a higher plateau.

As September is the fasting month for Muslims and in the month of October, we'll be having a double celebration for Hari Raya and Deepavali, I wish all Muslims "Selamat Berpuasa and Selamat Hari Raya Aidilfitri" and all our Hindu members and friends, "Happy Diwali".

The Institute will be hosting a Deeparaya Open House on 22 October and I look forward to meeting all of you at the event.

Akbar Moidunny FCIS
President